Professional Project

Executive Summary of Effects of Incentives on Employees Productivity

This study basically evaluates the relationship between the salary of the employee’s and how it impacts their performance and productivity in an organisation. The researcher has selected the case for that of Apple Inc, which is one of the biggest organisations in the technological sector. The annual reports for the organisation has been taken into consideration and the indication for how a positive relationship can be generated for the salary of the employee and their organisational performance has been selected. In addition to this, the review of literature with respect to the other useful findings which takes the case of other organisation has also been taken into consideration and the factors influencing the employee productivity and their salaries has been identified. Some of the other factors such as recognition, rewards and incentives and how they can impact the performance for the employees and how it can give them a force to work harder and can act as a motivation has been also critically reviewed in the literature.

Table of Contents

Background.

Problem Statement

Literature Review..

Research Methodology.

References.

Background of Effects of Incentives on Employees Productivity

In this research, the study will revolve primarily around between the employees and their salaries with respect to the performance of an organisation. This is the reason why, the case of Apple Inc. has been taken which will basically assist in analysing the usage of the independent variables for the wages which are specific and dependent to the net sales or the profit of the organisation. This study also takes into consideration about the secondary qualitative method which will help in creating annual reports from the company for a period of the past 10 years for the process of data collection.

Problem Statement

Organisations have started to gain an understanding about the crucial roles which must be played by the employees for the process of generating business goals and generating revenues for their organisations. This can be also witnessed in a lot of studies which are being conducted for the evaluation and for garnering the importance which can be implemented in any of organisation. Takin illustration from Rožman, Treven & Čančer (2017), who mentioned that the organisations must make sure that their employees are paid well enough so as to gain the facilitation and the success of the organisation. This holds true for another study as well, where the importance of employees have been studied by also making sure and emphasising on the fact that what exactly is the direct link which can be generated with managing the performance for the organisation vis-à-vis to the impacts of the employees and their performance. Filimonov (2017), mentions that the employees are one of the major assets who are responsible for making an organisation work. This is one reason why the organisations must be paid well enough so as to manage and circumvent any potential losses that may occur if the employees quit and join some other organisation. Landry, Gagné, Forest, Guerrero, Séguin, & Papachristopoulos (2017), added by saying that the disengaged employees in any organisation must directly or indirectly face and bear the additional costs to the company hence creating and highlighting the need for the engagement of employee.

Research Aim

The aim of this research will be to investigate the relationship which can be generated with respect to the salaries of employees and for their performance in organisation.

Research Questions

What is the relationship between pay and performances of the employees working in Apple Inc.?

Literature Review

According to Bau & Das (2017), the evaluation for the pay and the performance related to it builds simply on the concept that there must be an impact which can be based on the future performance related employees. He mentioned that the focus which is when based on merits and bonuses must be done in such a way that the employees also recognise the fact that their past performances have had a key role in generating the influences for the future performance of the employees. In addition to this, there was another study conducted which mentioned that there are various other quantitative surveys as well, conducted by Robescu & Iancu , (2016), which assessed the impact of salary on the performance of the employees. According to Ehrmmann, Reimer & Schaeffer (2016), the salaries of the employees play one of the important role in ensuring the sustainable living and their conditions. According to Fiaz, Su & Saqib (2017), the concept for productivity for the particular work is divided into parts which can be categorised as: individual productivity and organizational productivity. The individual productivity is primarily associated with the characteristics for the individuals which can appear in the form of characteristics which are related with the mental attitude and the efforts of individuals in order to improve the quality for enhancing the quality of life. Cao, Lemmon, Pan, Qian & Tian (2019), mentions that one of the main purposes for the employees working in any company lies in forms which can be earned in form of wages or compensation. The wages which are received must be based with the relations, reductions, for the respective workload. In addition to this, the main focus for the flexibility lies for the people who are working to respond in such a way that it can be used so as to respond with the needs for the people working in an organisation. Graves & Sarkis (2018), mentions that the extending life for working people lies and touches almost all of the aspects for people which are related with the job of a person such as recruitment, taking leaves or for that matter managing the corporate social responsibility as well. There are various different opinions which are formed on the primary intent of generating quality for the work life in a number of circumstances and also generating the circumstances which creates practices that can be claimed with the perception of the employees which is required to be fulfilled and satisfied for the chances which can be grown with the development for maintaining the quality of the work life. According to Jirjahn (2016), the measure of the employee and their performance is one of the crucial activities which prove to be important for the purpose of measuring the success which can also support the success for the organisation. There are some of the different factors as well which are said to be used in the measurement for the quantity of the work, quality of work and some of the other timeliness. The individuals and their characteristics include the factors such as age, gender, education, length of employment, job placement and other related factors and the work environment. (Kuvaas, Buch & Dysvik, 2018), mentions that the performance for the employees depends basically on the two different factors and they are: factors for self-acting self and other external factors. These factors are responsible for generating the position and their holders for getting competence, skills, knowledge, motivation, attitude and experience (Tang, 2019). It can be also said that there are several important implications which can be considered as the factor wages for leading the quality of working life that also needs attention for the management to improve the level of employee performance.

Research Methodology

The study primarily aims to evaluate the relationship of the employee’s along with their salaries with respect to the performance of the organisation. In order to assess the relationship between the two, usage of quantitative approach will be done. The quantitative methodology is believed suitable for conducting this study as the aim of the researcher lies in assessing the aims which can be used along with the perspectives that are theoretical and with the application of its practice. In addition to this, the annual reports for the organisation chose, Apple will be taken as it will help us with the generation of the generalisable findings which will help the researcher for creating future practices which will be helpful for the process of data collection. This can be also said that the approach for the same is useful and makes sure that there are appropriate source for the researcher so as to generate the future practices. In addition to this, the secondary approach will be selected for the collection of the data. This approach will prove to be useful and will also make sure that it is appropriate for the researcher as well so that it consumes less time and makes use of lesser resources as the data pre-exists and there will be a collation which is generated primarily by the primary researchers.

References for Effects of Incentives on Employees Productivity

Bau, N., & Das, J. (2017). The misallocation of pay and productivity in the public sector: Evidence from the labor market for teachers. The World Bank. DOI: https://doi.org/10.1257/pol.20170243

Buttner, E. H., & Lowe, K. B. (2017). The relationship between perceived pay equity, productivity, and organizational commitment for US professionals of color. Equality, Diversity and Inclusion: An International Journal. DOI: 10.1108/EDI-02-2016-0016

Cao, X., Lemmon, M., Pan, X., Qian, M., & Tian, G. (2019). Political promotion, CEO incentives, and the relationship between pay and performance. Management Science, 65(7), 2947-2965. DOI: 10.1287/mnsc.2017.2966

Daniel, C. O. (2019). Effects of Incentives on Employees Productivity. International Journal of Business Marketting and Management, 4(1). DOI: 2456-4559; PP. 41-48

Ehrmann, M. G., Reimer, M., & Schaeffer, U. (2016). Reconsidering the effect of pay disparity on firm performance. In Academy of Management Proceedings (Vol. 2016, No. 1, p. 17327). Briarcliff Manor, NY 10510: Academy of Management. DOI: S76-108

Fiaz, M., Su, Q., & Saqib, A. (2017). Leadership styles and employees' motivation: Perspective from an emerging economy. The Journal of Developing Areas, 51(4), 143-156. DOI: 10.1353/jda.2017.0093

Filimonov, D. (2017). Extrinsic motivation and incentives. DOI: 10.5539/ibr.v11n12p61

Graves, L. M., & Sarkis, J. (2018). The role of employees' leadership perceptions, values, and motivation in employees' provenvironmental behaviors. Journal of Cleaner Production, 196, 576-587. DOI: doi.org/10.1016

https://doi.org/10.1515/vjes-2016-0006

Jirjahn, U. (2016). Performance Pay and Productivity: A Note on the Moderating Role of a High‐wage Policy. Managerial and Decision Economics, 37(7), 507-511. DOI: https://doi.org/10.1002/mde.2786

Kuvaas, B., Buch, R., & Dysvik, A. (2018, July). Individual variable pay for performance, incentive effects, and employee motivation. In annual meeting of the Academy of Management, Chicago, IL. doi (Vol. 10). DOI: DOI: 10.5465/AMBPP.2018.12393abstract

Landry, A. T., Gagné, M., Forest, J., Guerrero, S., Séguin, M., & Papachristopoulos, K. (2017). The relation between financial incentives, motivation, and performance. Journal of personnel Psychology. DOI: https://doi.org/10.1027/1866-5888/a000182

Robescu, O., & Iancu, A. G. (2016). The effects of motivation on employees performance in organizations. Valahian Journal of Economic Studies, 7(2), 49-56. DOI: 

Rožman, M., Treven, S., & Čančer, V. (2017). Motivation and Satisfaction of Employees in the Workplace. Business systems research journal: international journal of the Society for Advancing Business & Information Technology (BIT), 8(2), 14-25. DOI: https://doi.org/10.1515/bsrj-2017-0013

Tang, L. (2017, July). Public Service Motivation and Public Sector Incentive. DOI: https://doi.org/10.2991/essaeme-17.2017.196

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